Former Treasury Secretary Lawrence Summers Says Bitcoin may become fundamental to commerce on Internet

By Prashant Jha
May 22, 2021 Updated May 22, 2021
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Lawrence Summers

Lawrence Summers, the former US Treasury Secretary and the former Chief Economist of the World Bank recently appeared on Bloomberg where he said that cryptocurrencies are here to stay and Bitcoin may become “fundamental to commerce on the Internet.” Summers said that just like Gold Bitcoin could become a choice as an inflation hedge and become digital gold.

Summers comment comes at a time when a slew of market FUDs right from China banning Bitcoin to the energy consumption debate of the BTC network. The bull run of 2021 saw many new traders and buyers flock to add cryptocurrency in their portfolio, most of them got in to make some quick money and now are panic selling to series of news headlines that are meant to deter new buyers. For example, China banning Bitcoin is nothing new and they have been making such an announcement since 2013.

The ‘Bitcoin network is bad for the environment’ debate first made headlines in 2018 which was later tracked down to a single blog without any research to back the claims. There is no denying that the network consumes a lot of electricity but a majority of it comes from clean energy sources and with each halving, the energy consumption would come down along with increasing renewable energy usage. In comparison, gold mining and the banking system consume exponentially more energy.

Bitcoin Bull Runs Are Historically Associated With FUDs

Each bull cycle of Bitcoin comes with its own FUD cycle as well, even though a majority of the ongoing FUDs have been debunked earlier, the new buyers often fall prey to such news and start panic selling.

Each bull cycle also sees a number of large retracements and this bull cycle are no different, where after nearly 4 months of hitting new ATH consistently the market has seen its first major retracement of over 40%. Previous bull cycles have registered at least 3-4 major retracements of 40% and more.

An engineering graduate, Prashant focuses on UK and Indian markets. As a crypto-journalist, his interests lie in blockchain technology adoption across emerging economies.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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